Family Bank Group has recorded a Ksh.3.5 billion Profit Before Tax for the first nine months of 2022 up from Ksh. 2.6 billion recorded in a similar period in 2021, marking a 33.2% growth in earnings.
The growth was primarily driven by strong partnerships and an increase in non-interest income. The Group’s loan book expanded by 22.7 percent to Ksh.79.8 billion while customer deposits increased by 13.8 percent to Ksh.92.7 billion in the period under review.
Total non-interest income increased by 22.4 percent to close at Ksh.2.7 billion for Q3’2022. Supported by a strong capital base, the balance sheet size grew with total assets increasing by 19.9 percent closing at Ksh.128.5 billion.
“As a Bank, we continue to create a healthy operating environment that provides consistent growth and profitability to our customers as we build a sustainable business that goes beyond profit,” said Family Bank CEO Rebecca Mbithi.
Net interest income increased by 9.8 percent to Ksh.6.2 billion, supported by an increase in interest income on loans and advances and government securities which grew by 16.6 % and 40.7 % respectively.
Similarly, non-funded income increased by 22.4 percent from Ksh. 2.3 billion to Ksh. 2.7 billion for the period under review with income from fees and commissions registering a decline of 50.1 percent to stand at Ksh.84.6 million.
Total operating expenses slightly increased by 3.6 percent to Ksh.5.5 billion from Ksh.5.3 billion. Loan loss provisions registered a 42.1 percent reduction to close at Ksh.469.6 million.
This year, the Bank has partnered with Aqua For All to incentivize targeted lending for eligible community-based water service providers (CWPs) in Kenya covering a portfolio of Ksh.350 million.
Under this program, Aqua for All shall provide a first loss grant to cover net losses resulting from a portfolio of qualifying loans in the unsecured Maji Plus product for CWPs. In addition, the Bank acquired Ksh.1.2 billion from Eco-Business Fund to increase access to finance for sustainable agricultural producers, particularly in the tea sector and Ksh.1.2 billion additional funding from Resp0nsability to deepen credit access to Small and Medium-sized Enterprises (SMEs).